Guinness Asian Equity Income X GBP Income

Asia-Pacific Equities

Rated Fund 2018-20. Equal weightings to profitable, dividend-paying companies

Guinness Asian Equity Income delivers a high yield, paid half-yearly, and meaningful five-year outperformance versus the sector average and the MSCI AC Pacific ex Japan index.

It aims to provide investors with exposure to high-quality, dividend-paying companies in the Asia-Pacific region. Its lead manager is Guinness Asset Management’s Edmund Harris, who has been managing Asian funds for more than 25 years and the Guinness Asian funds from launch in 2013. He is assisted by co-manager Mark Hammonds and analyst Sharukh Malik.

The fund, which charges a very competitive 0.74%, is relatively small at £165 million. But that is up from £96 million a year ago, and it is attracting a growing following. Harris and Hammonds run a high-conviction portfolio of 36 stocks and have no benchmark constraints.

The stocks are equally weighted and managed on a disciplined one-in, one-out basis. The duo looks for three things: quality, value and dividends. They focus on profitable companies that have generated consistently high returns on capital whose shares underprice the likely consistency of those returns, and that can grow their dividends.

The managers characterise the Asia region as a mix of advanced, high-income economies and newly industrialised countries. High growth and rapid development are often accompanied by volatility and risk, but they say strong generation of cash and its distribution as dividends provide a degree of downside protection.

“This is a great fund,” says Darius McDermott, managing director at FundCalibre. “The one-in, out-out philosophy and equal weighting of stocks mean the managers have to have real conviction in new and existing holdings before they make a change. It really focuses the mind, and investors have been rewarded.”

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Guinness Asian Equity Income X GBP Income
Manager
Guinness Asset Management Limited
Type
Open Ended Investment Company
ISIN
IE00BGHQDN69
Sector
Asia Pacific Excluding Japan
Launched
19/12/2013
OCF
1.24 %
Risk Rating
4
3 Year Sharpe
0.03
3 Year Alpha
0.29
Yield
4.7 %
Benchmark
MSCI AC Pacific Ex Japan NR USD
The investment objective of the Fund is to provide investors with both income and long-term capital appreciation.
Holding %
Corporate Travel Management Ltd 3.61 %
China Merchants Bank Co Ltd Class H 3.02 %
China Resources Gas Group Ltd 3.00 %
Ptt PCL 2.99 %
Largan Precision Co Ltd 2.99 %
Zhejiang Supor Co Ltd 2.98 %
JB Hi Fi Ltd 2.90 %
Sonic Healthcare Ltd 2.89 %
Luk Fook Holdings (International) Ltd 2.87 %
DBS Group Holdings Ltd 2.85 %
Region %
Asia - Emerging 43.55 %
Asia - Developed 38.93 %
Australasia 9.43 %
United States 8.08 %
Sector %
Financial Services 24.52 %
Consumer Cyclical 20.58 %
Technology 16.28 %
Real Estate 8.33 %
Industrials 8.23 %
Healthcare 8.12 %
Consumer Defensive 5.25 %
Name
Guinness Asset Management Limited
Address
SW1H 9AA, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Mark Hammonds
Joined 12/19/2013

Mark joined Guinness Asset Management in 2012 and is co-manager of the Guinness Asian Equity Income Fund. Prior to joining Guinness, Mark worked at Ernst & Young, where he qualified as a Chartered Accountant. Mark graduated from Corpus Christi College, University of Cambridge, in 2007 with a First Class degree in Management Studies. He is a CFA Charterholder.

Edmund Harriss
Joined 12/19/2013

Edmund has managed Asian Funds since 1994 both from London and from Hong Kong. Edmund worked for ten years from 1993 for Guinness Flight, which became Investec after the merger in 1998. After joining the Far East Investment Desk in 1994, he served as a member of the investment team managing the China & Hong Kong Fund (now the Guinness Atkinson China & Hong Kong Fund, for US investors). He moved to Hong Kong and became the Fund’s lead manager in 1998. In addition, Edmund has managed the Guinness Atkinson Asia Focus Fund (for US investors) since 2003, and the Guinness Atkinson Asia Pacific Dividend Fund (for US investors) since its inception in 2006. Edmund graduated from Christ Church, University of Oxford, with a Master’s degree in Management Studies and has a Bachelor’s degree in History from the University of York. He is also an Associate of the Society of Investment Professionals.

Data provided by Morningstar.

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